Voluntary offsetting in the Asian Pacific Region. How to create demand and maintain quality and consistency in emerging markets Carbon Forum Asia October 31, 2012 Renat Heuberger CEO, South Pole Carbon Climate change is a reality (Bangkok, October 2011) 2 State of the Carbon Markets: A true challenge for many project developers... 4.5 MW Biomass-fired Power Plant in Mallavali, India World’s first Gold Standard CDM project 3 ...but Voluntary Markets Porvide an Alternative Income, for Highest Highest-Quality Quality Projects. 4.5 MW Biomass-fired Power Plant in Mallavali, India World’s first Gold Standard CDM project 4 Distribution of CERs and VERs (%) by Project Type -> two different markets Sources: RISOE database, Ecosystems Marketplace 5 Distribution of CERs and VERs (%) by Regions -> two different markets Note: US and European p credits not counted Sources: RISOE database, Ecosystems Marketplace 6 Volumes Transacted (Mt CO2) -> two VERY different markets Sources: Ecosystems Marketplace, World Bank State of the Carbon Markets 2012 7 Why do Corproates Offset? Reputation and Customer Relations Source: The business case for carbon offsetting by Bloomberg New Energy Finance 2009 8 Who Offests CO2 Emissions? Sample of South Pole Carbon Customers Source: The business case for carbon offsetting by Bloomberg New Energy Finance 2009 9 Where are the Buyers? …compared to 70% of supply s ppl – some ground to cover! 10 Why Voluntary Carbon Markets are Raising in Asia • • • Increasing Importance of Corporate Social Responsibility in Asia C Compliance li with ith Supply S l Chain Ch i Management M t Standards in Europe / US Pricing of Carbon – engagement in precompliance to get ready for Emissions Trading 11 South Pole Carbon: One of the leading global carbon developers 12 Contact: South Pole Carbon Asset M Management t Ltd. Ltd Renat Heuberger CEO Technoparkstr. 1 CH-8005 CH 8005 Zurich Tel.: +41 43 501 3550 [email protected] www southpolecarbon com www.southpolecarbon.com 13